EBI, LLC, of New Jersey, and Biomet, Inc., of Indiana, have agreed to pay the federal government $6.07 million to resolve claims that they induced doctors to purchase their bone growth stimulators through the use of kickbacks.
The settlement with the medical device companies stems from a whistleblower lawsuit filed by Ross Feller Casey on behalf of a former Biomet employee, Yue Yu, under the False Claims Act.
Following Yu’s filing of the qui tam lawsuit, the government intervened in the case and Brian J. McCormick, Jr. of Ross Feller Casey worked with government lawyers to litigate and ultimately settle this case.
“Decisions about medical devices should be based on the best interests of the patient, not on whether the manufacturer pays a kickback,” McCormick, who has a large and successful whistleblower practice, said after the settlement was reached. “These sorts of improper financial incentives undermine the integrity of medical decisions, waste taxpayer funds and are unfair to competitors who are trying to play by the rules.”
Among other things, Yu’s suit alleged that the defendants caused false claims to be submitted to Medicare and Medicaid by using illegal kickbacks, including remuneration to staff in doctors’ offices under personal service agreements to induce orders of OsteoGen bone growth stimulators. The federal government found that these payments violated the Anti-Kickback Act. Struck last week, the settlement also resolved allegations that EBI was reimbursed for stimulators that had been refurbished.
If you have information involving medical device fraud on another type of government fraud, you should contact one of the leading whistleblower lawyers at Ross Feller Casey now.
Ross Feller Casey is a Philadelphia law firm with a national reputation for winning major whistleblower cases, including those involving medical devices.
The firm’s whistleblower practice is committed to representing whistleblowers in False Claims Act cases as well as those filed under IRS, SEC and other whistleblower statutes
To learn more, go to www.rossfellercasey.com/practice-areas/whistleblower-litigation/